Technip boosts LNG workforce in Qatar to 61,000

Friday, 16 November 2007

The company gave updates of its various LNG projects after reporting  third-quarter net income rose 26 percent.

“In Qatar, the construction of three LNG plants is progressing with mobilization of additional resources and construction productivity is expected to increase as temperature conditions improve on the site,” Technip Chief Executive Thierry Pilenko said in presenting third-quarter earnings.

“About 61,000 people are now mobilized and 655 cranes are on the site. Some 700,000 tonnes of equipment have already been delivered.

“Negotiations are ongoing between all parties which are focused on delivering the LNG Trains in phase with customers’ requirements,” the company added.

“Within a market environment which remains favourable, many large-scale projects should be awarded in the year to come,” Technip said.

Technip, which also said Nigeria LNG Train 6 was expected to begin production by the end of the year, posted third-quarter net income of 76M euros ($110M) from just over 60M euros in the same quarter a year ago.

Onshore and downstream revenues were 55 percent higher at 1.28 billion euros compared with 829M euros in the same period a year ago and helped by. “Main contributors included the four LNG projects in Qatar and Yemen,” Technip said.

US investment bank Citigroup, however, said there may be future writedowns on the Qatar projects “where productivity issues are a concern.”

“Market concerns over Onshore division margins will not have been helped by the admission of a 50M euros writedown in Saudi, not Qatar as widely expected,” Citigroup said.

Technip said its order intake so far during 2007 has been just over 5Bln euros ($7.3Bln) compared with 4.48Bln euros in the same nine months last year.